Creating Value Through Collaboration

Creating Value Through CollaborationCollaborationCollaboration

Dick HillVP Manufacturing Advisory ServicesARC Advisory Groupcrhill@ARCweb.comcrhill@ARCweb.com

Wise Men Once Said…Wise Men Once Said…

“It is probably not love that makes the world go around but rather those mutuallygo around, but rather those mutually supportive alliances through which partners recognize their dependence on each other for th hi t f h d d i t l ”the achievement of shared and private goals.”

Fred Allen

“It is not necessary to change. Survival is not mandatory.” y

W. Edwards Deming

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Concept: The Plant as a Node in a Value Network (CMM)Concept: The Plant as a Node in a Value Network (CMM)

Collaborative Manufacturing Management considersthe relationship between all the nodes on the Value

Network

CMM Nodes:

Network.

Process Plant

Customers

A process plant, for example, must collaborate with upstream and downstream operations

f lfill h i i

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to fulfill the mission.

Today’s Operating ChallengesToday’s Operating ChallengesBusiness Enterprise Domain

Services

CustomersFulfillmentMaterials Mgt Process Plant

Operations

SuppliersValue Chain Domain

RD&E

p

Collaboration isRD&E Collaboration is essential to meet

business objectives

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ProductionLifecycle Domain

objectives

Business Objectives – Creating ValueBusiness Objectives – Creating Value

Value to Shareholder

Customer Satisfaction

Health, SafetyEnvironment

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Levers to Meet ObjectivesLevers to Meet Objectives

ProcessTechnologyTechnology

People

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Alignment of Objectives and LeversAlignment of Objectives and Levers

ShareholderValue

ProcessTechnology

Customer S ti f ti

Health, Safety & E i t Satisfaction& Environment

People

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Information and Collaboration Make it Happen

Collaboration - in the Value Chain AxisCollaboration - in the Value Chain Axis

Materials Mgt FulfillmentCustomersSuppliers CustomersSuppliers

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Feedstock and Raw Material SuppliersFeedstock and Raw Material Suppliers

Topic From To

Inventory You Order it They Anticipate your need

Service Process for Resolving Eliminate Cause ForService Process for Resolving Disputes

Eliminate Cause For Dispute

Quality Inspect and Verify Trusted

O i Vi ibili R i d C ll b iOperations Visibility Restricted Collaborative

Work Processes Separate Synchronized

Relationship Supplier Customer Business PartnerRelationship Supplier - Customer Business Partner

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Objective: Zero Feedstock Surprises

Customer RelationshipCustomer Relationship

Topic From To

Inventory They Order it You Anticipate their need & manage it

Service Process for Resolving Di t

Eliminate Cause For Di tDisputes Dispute

Quality Inspect and Verify You Guarantee

Operations Visibility Restricted CollaborativeOperations Visibility Restricted Collaborative

Work Processes Separate Synchronized

Relationship Supplier - Customer Business Partnerp pp

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Objective: Zero Customer Disappointments

Collaboration – on the Lifecycle AxisCollaboration – on the Lifecycle Axis

Services

RD&E

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Plant LifecyclePlant Lifecycle

Topic From To

Design Documentation As-Built at Startup Living Database for Operations

Design Operate and None to Limited Standards-basedDesign, Operate and Maintain Integration

None to Limited Custom interfaces

Standards based Interoperability

Plant Asset Management

Maintenance’s Responsibility for

Active Management by Both Operations g p y

Availabilityy p

and Maintenance

Design Objectives Designed for Low Cost Startup

Designed for Optimum Operation Benefits

Work Processes Separate Synchronized - DOM

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Objective: Maximum Asset Performance

Product LifecycleProduct Lifecycle

Topic From ToTopic From To

Design Processes Sequential Product and Process Design

Concurrent Product and Process Design

Design - Build Integration

Design validation during startup

Virtual validation before startup

Design, Build and Service Integration

None to Limited Custom interfaces

Standards-based InteroperabilityService Integration Custom interfaces Interoperability

Design Objectives Time to ProductionLow Cost to Make

Optimize Profit of Product

W k P S t S h i dWork Processes Separate Synchronized –Digital Factory

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Objective: Maximum Product Performance

Collaboration – on Plant-Business AxisCollaboration – on Plant-Business Axis

BusinessBusiness

Operations

Production

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Production

Finding the Hidden CapacityFinding the Hidden Capacity

Topic From To

Production Variance Conservative Targets Push Limits

Which Machine is th bl ?

Experience Data-driven E id OEEthe problem? Evidence - OEE

Unscheduled Downtime

Reactionary Predicting

I i M l i P id dInstrumentation Behavior

Manual maintenance Program guided maintenance

Availability vs Utilization

Maintenance: AvailabilityO i U ili i

Collaboration & Work ProcessesUtilization Operations: Utilization Work Processes

Obj ti O ti i P d ti

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Objective: Optimize Production

Proactive versus Reactive Energy ManagementProactive versus Reactive Energy Management

Topic From To

Energy Consumption Consumption History Forecast Consumption

Peak Loads Monitor Predict

Energy Balance Daily Summary Real Time Balance

Operational Options Try it and see ‘What-if’ simulation

C G ti U t ll d P Ti Li C t lCo-Generation Uncontrolled Power Purchases

Tie-Line Control

Production vs energy Scheduled independent

Optimize schedule and energyindependent and energy

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Objective: Meet Energy Needs at Lowest Cost

Collaboration: Users and SuppliersCollaboration: Users and Suppliers

ShareholderValue

P

ShareholderValue

Customer Satisfaction

Health, Safety & Environment

ProcessTechnology

Customer Satisfaction

Health, Safety & Environment

ProcessTechnology

liPeople People

Supplier Customer

Projects, Products, Operations…

Let’s Discuss What Works and What are the

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Let s Discuss What Works and What are the Results

“I not only use all the brains that I have, but all that I can borrow.” ,

Woodrow Wilson

Thank You.Thank You.For more information, contact dhill@arcweb.com or visit

our web pages atwww arcweb com

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www.arcweb.com